Federal authorities have charged the operator of the now-defunct MyPayrollHR with bank fraud. U.S. Attorney Grant Jaquith and the FBI’s Albany office say 49-year-old Michael Mann appeared in federal court Monday on a criminal complaint. Authorities say Mann, of Saratoga County, fraudulently obtained at least $70 million in loans from banks and other financial institutions.
Jaquith and James Hendricks, Special Agent in Charge of the FBI’s Albany office, say Mann “created companies that had no purpose other than to be used in the fraud; fraudulently represented to banks and financing companies that his fake businesses had certain receivables that they did not have; and obtained loans and lines of credit by borrowing against these non-existent receivables.”
They say Mann started the scheme in 2010 or 2011.
Before abruptly ceasing operations on September 5, MyPayrollHR processed payroll and tax payments for about 1,000 small-business clients located across the country.
Before the closure, authorities say Mann’s banks froze his accounts, suspecting him of fraud. The freeze affected MyPayrollHR’s clients because, as part of the scheme, Mann diverted clients’ payroll payments to a bank account he controlled, according to authorities.
Mann was released on bond. If convicted, he faces up to 30 years in prison, a maximum $1 million fine, and up to 5 years of post-release supervision.
The FBI is seeking information from people and businesses who may have suffered financial loss due to the alleged activities of Mann, MyPayroll, and affiliated companies. Information can be sent to the FBI by filling out a form on the FBI’s web site.
